Shares of Coal India surged by nearly 3 per cent in morning trade on the bourses today after the company reported a 64 per cent jump in net profit during the first quarter this fiscal.

Shares of the Maharatna firm opened on a firm note at Rs 390 apiece, a surge of 1.21 per cent from their previous closing price. They subsequently zoomed up further to an intra-day high of Rs 395.25, nearly 2.58 per cent up from their last close.

However, some of the gains were eroded and the stock was later trading at Rs 391.05, up 1.49 per cent from its last close. According to the data on BSE, 1.32 lakh shares of the company had exchanged hands by 11.11 a.m.

The stock witnessed similar movement on National Stock Exchange and opened at Rs 390.10, then rallied ahead to a high of Rs 395.40, 2.63 per cent above its previous close.

It was later trading at Rs 391.55, up 1.64 per cent from its previous close. Over 14.78 lakh shares of Coal India were traded on NSE by 11.11 a.m.

Market experts attributed the surge in the stock to its robust first quarter numbers.

The company had reported a 64 per cent jump in consolidated net profit to Rs 4,143 crore for the first quarter ended June 30. In the April-June period of 2010, the company’s consolidated net profit stood at Rs 2,525 crore.

Net sales of the public sector company in the first quarter of the current fiscal increased to Rs 14,499 crore from Rs 11,435 crore in the same period of 2010-11.

CIL’s coal output was up marginally by 1 per cent in the quarter ended June 30 at 96.30 million tonnes (mt), compared with 95.15 mt in the same period last fiscal.

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